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Investing.com -- Polaris Inc. (NYSE:PII) stock jumped 9% in after-hours trading Monday following the company’s announcement that it will sell a majority stake in its Indian Motorcycle business to private equity firm Carolwood LP.
The transaction, expected to close in the first quarter of 2026, is projected to be accretive to Polaris’ annualized adjusted EBITDA by approximately $50 million and boost adjusted earnings per share by about $1.00. Polaris will maintain a small equity position in Indian Motorcycle after the deal closes.
Indian Motorcycle contributed approximately $478 million, or 7% of Polaris’ revenues for the trailing twelve-month period ended June 30, 2025. The deal will transfer about 900 employees to the new standalone business, along with manufacturing facilities in Spirit Lake, Iowa, and Monticello, Minnesota, as well as the design center in Switzerland.
"For Polaris, the sale will further strengthen our focus on the areas of our portfolio that offer the strongest growth potential and allow us to accelerate investments in key initiatives," said Polaris CEO Mike Speetzen. "It also will unlock greater long-term value for Polaris and our shareholders."
Carolwood has selected Mike Kennedy, a 30-year motorcycle industry veteran, to serve as CEO of the independent Indian Motorcycle organization once the deal closes. Kennedy previously served as CEO of RumbleOn and Vance & Hines, and spent 26 years at Harley-Davidson.
Polaris also provided preliminary third-quarter results, expecting sales to be at the high end of its previously issued guidance range of $1.6 billion to $1.8 billion. The company anticipates third-quarter adjusted EPS in the range of $0.31 to $0.41, "meaningfully higher" than original expectations, driven by higher shipments, cost management, and progress in operational efficiency initiatives.
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